How to show cost of flat received in IT return after redevelopment

I want to know how to show cost of flat received in IT return after redevelopment 

My old flat was given by society for redevelopment to builder on 20 October 2015 & I received allotment of new flat on 7th March 2020.

How do I show cost of new flat in ITR return for FY 2019-2020

Original Flat was transferred in my name in FY 2012-2013 & Cost of acquisition with indexation was Rs 24,83,089/-

I have not received sale agreement from Builder for new flat alloted to me.

What Documents, I need to get from builder & how do I show this transaction in IT return

Replies (6)
Quick Summary
This discussion addresses how to declare the cost of a new flat received after a redevelopment project in your Income Tax Return (ITR). It covers situations where the original flat was exchanged with a builder for redevelopment, and a new flat is subsequently allotted. Key points include understanding the value received, who incurred redevelopment costs, and the nature of agreements with the builder. The advice suggests that the cost incurred by the builder for your portion of the flat might be considered a cost of improvement for tax purposes, and relevant agreements should be retained.

Plz confirm certain aspects:

1. what is the value you have received?

2. was the cost of redevelopment incurred by you?

3. were there any transfer and retransfer agreements with the builder?

1 I received corpus & I invested that full amount in FY 2015-16 in 54EB bonds. 

2. Full Cost of redevelopment was incurred by builder

3.There was agreement between Builder, Society & myself for transfer of Rights to builder for all flats in society & at the time of agreement for Alternate Accommodation, New flat number to be allocated was mentioned & I received same flat number

Is the agreement between you and your builder registered??

Yes it was registered with Stamp office ,as "Agreement for Permanent Alternate Accommodation"

I think the consideration paid to the builder for construction may be taken as cost of improvement at the time os sale. as of now no need to show in return as it is a capital expenditure and cannot be allowed as deduction from revenue income.

plz have the details of cost paid to builder for your divided portion of flat for claiming such improvement.

Also keep a copy of agreement for development and re-allotment. I guess it's sufficient.

let's see if someone suggests more dox to be maintained.

Thanks for update

 

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